Increased home prices reported

5 percent rise is largest in six years, according to new report by CoreLogic

Associated Press

Published 6:51 pm, Tuesday, November 6, 2012

Photo: Chris O'Meara

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FILE - In this Wednesday, Sept. 26, 2012, file photo, a "sold" sign sits out in front of a home in Riverview, Fla. A measure of U.S. home prices jumped 5 percent in September compared with a year ago, the largest year-over-year increase since July 2006. The gain reported by CoreLogic offered more evidence of a sustainable housing recovery. (AP Photo/Chris O'Meara, File) less

FILE - In this Wednesday, Sept. 26, 2012, file photo, a "sold" sign sits out in front of a home in Riverview, Fla. A measure of U.S. home prices jumped 5 percent in September compared with a year ago, the ... more

Photo: Chris O'Meara

Increased home prices reported

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WASHINGTON — A measure of U.S. home prices jumped 5 percent in September compared with a year ago, the largest year-over-year increase since July 2006. The gain reported by CoreLogic offered more evidence of a sustainable housing recovery.

The real estate data provider also said Tuesday that prices declined 0.3 percent in September from August, the first drop after six straight increases. The monthly figures are not seasonally adjusted. CoreLogic says the monthly decline reflects the end of the summer home-buying season and not a softening in the housing recovery.

Steady price increases should give the housing market more momentum when home sales pick up in the spring. Rising prices encourage more homeowners to sell their homes and entice would-be buyers to purchase homes before prices rise further.

Other measures have also shown healthy gains in home prices over the past year. The Standard & Poor's/Case Shiller 20-city index rose 2 percent in August compared with a year ago.

The price gains in the past year reported by CoreLogic were widespread. Prices have risen in all but seven states.

Some of the biggest increases were in states that suffered the worst from the housing bust. Home prices in Arizona jumped 18.7 percent in the past year. Home prices in Idaho rose 13.1 percent, the second largest. Nevada's home values rose 11 percent. The states with the biggest drops were Rhode Island (3.5 percent) and Illinois (2.3 percent).